Palliative Fund Theft: Kaduna Court Sentences Two Ex-Bankers, Exposes Systemic Vulnerability in Government Intervention Schemes
The Report
As reported by the Premium Times, the Kaduna State High Court has sentenced two former Access Bank employees, Obadofin Bamise and Hadiza Yakubu, to seven years’ imprisonment each for theft. The convictions follow their guilty pleas to charges brought by the Economic and Financial Crimes Commission (EFCC) under section 274 of the Kaduna State Penal Code Law, 2017.
Justice A. A. Bello, who presided over the case, granted each convict the option of paying a N50,000 fine in lieu of imprisonment. The charges stemmed from the diversion of customer funds linked to accounts used for a federal government palliative scheme. Prosecutors detailed that Bamise stole N433,000, while Yakubu diverted N806,000 between November 2024 and January 2025. However, EFCC investigators informed the court that a wider probe revealed unauthorised withdrawals from the accounts of 305 palliative scheme beneficiaries, totalling N7,842,700.
“The court, however, allowed each convict the option of paying a N50,000 fine instead of imprisonment.”
Both defendants were prosecuted while still in active service at the bank, having direct access to customer accounts. The case adds to a growing list of convictions involving bank staff who exploit internal access to move funds illegally.
How the theft happened
WANA Regional Analysis
This conviction, while a modest legal victory, underscores a deeply troubling pattern for West Africa’s financial governance. The case is not an isolated incident but a symptom of systemic weaknesses in internal controls within financial institutions across the region. The fact that two former bankers could allegedly divert funds from a federal government palliative scheme—a programme designed to cushion the economic hardship of vulnerable citizens—raises serious questions about the integrity of financial intermediaries handling public welfare funds.
From a regional policy perspective, the case highlights a critical vulnerability in the distribution of social intervention funds. Across West Africa, governments increasingly rely on digital payment platforms and bank accounts to disburse cash transfers, subsidies, and emergency relief. The Nigerian experience, as illustrated here, suggests that without robust oversight, these channels can become conduits for theft by insiders. For ECOWAS member states scaling up similar schemes—such as Ghana’s Livelihood Empowerment Against Poverty (LEAP) or Senegal’s social safety nets—the implications are clear: the security of beneficiary data and transaction monitoring must be prioritised alongside disbursement speed.
The economic impact is twofold. First, the direct loss of N7.8 million, while relatively small in national terms, represents a significant breach of trust in a system meant to serve the poorest. Second, and more damaging, is the erosion of public confidence in government-led palliative programmes. If citizens perceive that funds intended for them are siphoned by bank employees, the legitimacy of such schemes is undermined, potentially reducing participation and increasing social unrest.
From a governance standpoint, the case exposes the limitations of the EFCC’s enforcement capacity. While the commission secured convictions, the option of a N50,000 fine—a fraction of the amounts stolen—raises questions about deterrence. For a bank employee, the risk of a small fine may not outweigh the potential gain from exploiting access to customer accounts. This sentencing disparity could signal to other would-be offenders that the consequences are manageable, thereby perpetuating the cycle of fraud.
Historically, West African financial institutions have struggled with insider fraud. The Central Bank of Nigeria and other regional regulators have issued multiple circulars mandating enhanced Know Your Customer (KYC) protocols, transaction limits, and audit trails. Yet, as this case demonstrates, implementation remains uneven. The involvement of 305 customer accounts suggests a systemic failure in monitoring unusual transaction patterns, which should have been flagged by internal risk management systems.
For the ECOWAS region, this case serves as a cautionary tale for the planned harmonisation of digital financial services under the ECOWAS Payment and Settlement Systems (EPSS) framework. As cross-border digital transactions increase, the potential for similar insider abuse grows. Regional regulators must consider adopting common standards for employee access controls, mandatory reporting of suspicious transactions, and uniform penalties for financial crimes to prevent Nigeria’s vulnerabilities from becoming a regional contagion.
305 customers affected
Regional Backdrop
The case occurs against a backdrop of heightened scrutiny of Nigeria’s palliative distribution mechanisms. Since the removal of fuel subsidies in May 2023, the federal government has launched multiple cash transfer programmes to mitigate the cost-of-living crisis. These schemes have been plagued by allegations of mismanagement, ghost beneficiaries, and diversion of funds. The conviction of these two ex-bankers is the latest in a series of EFCC actions targeting financial sector fraud, but it also highlights the broader challenge of ensuring that public funds reach their intended recipients.
Across West Africa, similar challenges exist. In Ghana, the Auditor-General’s reports have repeatedly flagged irregularities in social intervention fund disbursements. In Sierra Leone, the government’s COVID-19 relief payments faced allegations of insider fraud. The pattern is consistent: where cash flows through financial intermediaries with weak oversight, leakage occurs. This case reinforces the need for a regional approach to financial integrity, particularly as digital payment systems become the backbone of social protection programmes.
A recurring pattern in bank insider fraud cases
Original Reporting By:
Premium Times